Federal Income Tax Brackets for 2026, Explained Simply
In this guide
- 2026 federal income tax brackets
- 2026 standard deduction
- How tax brackets actually work
- Worked example: a $75,000 salary
- Why your marginal rate matters
- Deductions vs. credits
- Legal ways to lower your taxable income
- What about state taxes?
- Three more examples at different incomes
- Frequently asked questions
- Key takeaways
“I don’t want a raise, it’ll push me into a higher tax bracket.” It’s one of the most common money myths in America, and it’s wrong. Understanding how tax brackets actually work makes it clear why a raise always leaves you with more money, and it helps you make smarter choices about retirement contributions and deductions.
Below are the official 2026 federal income tax brackets and standard deduction amounts, followed by a plain-English explanation of how they work and a worked example. These figures apply to income earned in 2026, reported on returns filed in early 2027.
2026 federal income tax brackets
The seven federal rates are unchanged from 2025: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The income thresholds rose for inflation. The rates apply to taxable income, meaning income after deductions.
Single filers
| Rate | Taxable income |
|---|---|
| 10% | $0 to $12,400 |
| 12% | $12,401 to $50,400 |
| 22% | $50,401 to $105,700 |
| 24% | $105,701 to $201,775 |
| 32% | $201,776 to $256,225 |
| 35% | $256,226 to $640,600 |
| 37% | Over $640,600 |
Married filing jointly
| Rate | Taxable income |
|---|---|
| 10% | $0 to $24,800 |
| 12% | $24,801 to $100,800 |
| 22% | $100,801 to $211,400 |
| 24% | $211,401 to $403,550 |
| 32% | $403,551 to $512,450 |
| 35% | $512,451 to $768,700 |
| 37% | Over $768,700 |
Head of household
| Rate | Taxable income |
|---|---|
| 10% | $0 to $17,700 |
| 12% | $17,701 to $67,450 |
| 22% | $67,451 to $105,700 |
| 24% | $105,701 to $201,750 |
| 32% | $201,751 to $256,200 |
| 35% | $256,201 to $640,600 |
| 37% | Over $640,600 |
Source: IRS inflation adjustments for tax year 2026 (Revenue Procedure 2025-32).
2026 standard deduction
Most people take the standard deduction rather than itemizing. For 2026:
| Filing status | Standard deduction |
|---|---|
| Single or married filing separately | $16,100 |
| Married filing jointly | $32,200 |
| Head of household | $24,150 |
Taxpayers 65 or older, or blind, get an additional standard deduction, and a separate temporary deduction of up to $6,000 for people 65 and older applies for 2025 through 2028.
How tax brackets actually work
The US uses a progressive tax system with marginal rates. Each rate applies only to the slice of income within its bracket, not to all your income.
Think of it as a set of buckets. Your first $12,400 of taxable income (single) fills the 10% bucket. The next dollars fill the 12% bucket, up to $50,400. Only income above that goes into the 22% bucket, and so on.
So when you get a raise that pushes you into a higher bracket, only the extra dollars above the threshold are taxed at the higher rate. Everything below is taxed exactly as before.
Worked example: a $75,000 salary
Let’s calculate 2026 federal income tax for a single filer earning $75,000 with no other income, taking the standard deduction.
Step 1: Find taxable income
$75,000 − $16,100 standard deduction = $58,900 taxable income
Step 2: Apply each bracket
| Bracket | Income taxed in this bracket | Tax |
|---|---|---|
| 10% | $12,400 | $1,240 |
| 12% | $38,000 ($12,400 to $50,400) | $4,560 |
| 22% | $8,500 ($50,400 to $58,900) | $1,870 |
| Total | $58,900 | $7,670 |
Step 3: Understand your rates
- Marginal rate: 22%, the rate on your last dollar of income.
- Effective rate: $7,670 ÷ $75,000 = about 10.2% of total income.
Even though this person is “in the 22% bracket,” they pay about 10% of their salary in federal income tax. Most of their income is taxed at 10% and 12%.
Simplified example. Credits, other income, pre-tax deductions and state taxes change the result. This doesn’t include Social Security and Medicare taxes.
Why your marginal rate matters
Your marginal rate tells you how much you save, or owe, on your next dollar. That’s useful for decisions like:
- Traditional vs. Roth contributions. A $1,000 traditional 401(k) contribution saves $220 in federal tax if you’re in the 22% bracket, but only $120 in the 12% bracket. That’s why lower-bracket workers often favor Roth accounts. Compare them in Roth IRA vs. traditional IRA.
- Deductions. A deduction is worth your marginal rate times its amount. A $1,000 deduction saves $220 at 22%.
- Side income. Extra income is taxed at your marginal rate (plus self-employment tax if you’re self-employed). See how side hustle income is taxed.
Deductions vs. credits
- Deductions reduce your taxable income. Their value depends on your bracket.
- Credits reduce your tax bill dollar for dollar. A $1,000 credit saves $1,000 regardless of your bracket.
Many young professionals miss out on both. Our list of tax deductions and credits young professionals miss covers the most common ones, including the student loan interest deduction and the Saver’s Credit.
Legal ways to lower your taxable income
- Contribute to a traditional 401(k) or 403(b). For 2026 you can contribute up to $24,500.
- Contribute to an HSA if you have a qualifying high-deductible health plan: up to $4,400 for self-only coverage in 2026. Learn how an HSA works.
- Deduct traditional IRA contributions if you qualify.
- Deduct student loan interest, up to $2,500, subject to income limits.
- Use pre-tax benefits at work, like FSAs and commuter benefits.
What about state taxes?
Federal brackets are only part of the picture. Most states also tax income, some with flat rates and others with their own brackets. Several states have no wage income tax. Your state’s revenue department publishes its current rates.
Three more examples at different incomes
To see how marginal rates play out, here’s 2026 federal income tax for three single filers with only wage income, taking the standard deduction of $16,100:
| Salary | Taxable income | Federal income tax | Marginal rate | Effective rate on salary |
|---|---|---|---|---|
| $45,000 | $28,900 | $3,220 | 12% | About 7.2% |
| $75,000 | $58,900 | $7,670 | 22% | About 10.2% |
| $120,000 | $103,900 | $17,570 | 22% | About 14.6% |
How the $120,000 figure works:
- 10% on the first $12,400 = $1,240
- 12% on $12,400 to $50,400 ($38,000) = $4,560
- 22% on $50,400 to $103,900 ($53,500) = $11,770
- Total = $17,570, or about 14.6% of the $120,000 salary
How a traditional 401(k) changes the picture
Now suppose the $75,000 earner contributes 10% ($7,500) to a traditional 401(k):
| No 401(k) contribution | $7,500 traditional 401(k) | |
|---|---|---|
| Wages | $75,000 | $75,000 |
| Taxable income after standard deduction | $58,900 | $51,400 |
| Federal income tax | $7,670 | $6,020 |
| Federal tax saved | — | $1,650 |
Because every dollar of that contribution came out of the 22% bracket, the contribution saved 22% of $7,500. If the contribution had pushed taxable income below $50,400, the dollars below that line would have saved only 12%. That’s a practical way to see your marginal rate at work.
Simplified examples that exclude credits, state taxes and FICA.
Frequently asked questions
Will a raise put me in a higher tax bracket and lower my take-home pay?
No. Only the portion of income above the bracket threshold is taxed at the higher rate. A raise always increases your after-tax income from wages.
What bracket am I in?
Subtract your deductions (usually the standard deduction) from your income to find taxable income, then find where it falls in the table for your filing status. That’s your marginal bracket.
When will the 2027 tax brackets be released?
The IRS usually announces the next year’s inflation adjustments in the fall, typically in October or November. We update this guide when the new figures are published.
Do tax brackets apply to capital gains?
Long-term capital gains and qualified dividends have their own lower rates: 0%, 15% and 20%, depending on your taxable income. Short-term gains are taxed at ordinary income rates.
Is my effective tax rate or marginal rate more important?
Both matter for different reasons. Your effective rate shows your overall tax burden. Your marginal rate helps you evaluate decisions like retirement contributions and extra income.
Key takeaways
For 2026, the seven federal rates range from 10% to 37%, with brackets that rose for inflation and a standard deduction of $16,100 for single filers and $32,200 for married couples filing jointly. Rates are marginal, so moving into a higher bracket only affects the dollars above the threshold.
Try it now: Estimate your 2026 taxable income and find your marginal bracket. Then check whether a traditional 401(k), an HSA or the deductions above could lower your bill. To see where your withholding comes from, read how to read your paycheck.